California Lowers Excise Tax Rate on Gas

State Board of Equalization Vice Chair George Runner announced that California’s excise tax on gasoline will decrease by six cents per gallon, from 36 cents to 30 cents per gallon, beginning July 1, 2015.

“This is welcome news for overtaxed Californians who had essentially given government an interest-free cash advance,” said Runner. “The lower rate will help correct the over collection of tax brought about by lower gas prices.”

State law requires the BOE to annually adjust the state excise tax rate on gasoline by March 1 of each year. The Board approved the six cent tax rate reduction during its February 2015 meeting.

“Californians should know, however, that this cut won’t even fully offset the cost of the ‘hidden gas tax’ that went into effect this year to fund Governor Brown’s High Speed Rail project and other so-called anti-global warming efforts,” added Runner.

Even with the lower rate, Californians will continue to pay some of the highest gas taxes in the nation. According to the latest information from GasBuddy.com, California also has the highest average gas price in the nation, beating both Alaska and Hawaii for the top spot.

The new 30 cent per gallon tax rate will remain in effect until June 30, 2016.